First GameStop allegedly allowed its employees (who make at least $12.83 an hour) to work in unsafe conditions without cleaning supplies, then it declared itself an essential business while telling its employees to “wrap their hands in garbage bags” now they’re cutting employees pay while reopening during a pandemic despite having approximately $772 million in total cash and liquidity.
In a GameStop press release update:
“Beginning April 26th, certain other employees across the Company’s worldwide operating units will receive temporarily reduced pay of between 10% and 30%. The Company has begun the process of re-opening stores in Italy, Germany, Austria and the states of South Carolina and Georgia and is preparing for the potential to re-open in other operating countries and states in the coming weeks. Currently, one third of GameStop stores are closed in the U.S. while the rest sell games only via curbside pickups.”
In addition, CEO, George Sherman (who is reportedly worth at least $43.1 million dollars), will take a “temporary base salary reduction of 50%.”
The rest of the corporate leadership team, including CFO Jim Bell (estimated networth of $1.18 Million), will take 30% pay cuts while GameStop’s board of directors, which includes former president of Nintendo of America Reggie Fils-Aimé (net worth of $40 million dollars), take 50% cuts.
GameStop also announced cost-saving measures that include the option of temporary furloughs or reduced work weeks for “corporate support staff,” less new inventory, and delays in paying rent on certain leases.